LONDON (ShareCast) - (Sharecast News) - Gfinity announced on Wednesday that it has signed an exclusive licence agreement with 0M Technology Solutions to commercialise its artificial intelligence technology, Connected IQ (CIQ), which targets the connected video market.
The AIM-traded company said it had also raised £0.26m through a subscription and director participation to support the commercialisation of CIQ and new business opportunities.

It said the licence agreement grants Gfinity exclusive rights to CIQ, with 0M receiving a 30% royalty on net profits generated.

The board said it saw potential in leveraging its existing network within advertising and digital media monetisation to commercialise the technology.

However, it acknowledged that CIQ was at an early stage, with limited sales history.

As part of the deal, Gfinity said it had also secured an option to acquire 0M, CIQ, and its associated intellectual property for £2m from the first anniversary of the licence agreement, with the option expiring on the third anniversary.

0M is owned by Robert Keith, who holds a 19.6% stake in Gfinity, making the transaction a related party deal under AIM rules.

The board, following consultation with its nominated adviser, said it believed the agreement was fair and reasonable for shareholders, citing the company's 70% profit share and exclusive rights under the licence.

Gfinity said it raised £0.245m through a third-party subscription at 0.0625p per share, with an additional £15,000 expected from CEO David Halley.

The proceeds would support the development of CIQ and general working capital.

It said the fundraising included warrants, allowing participants to subscribe for additional shares at 0.09p, with further incentives if Gfinity's share price exceeded 0.12p.

The new shares would be admitted to AIM, with trading expected to commence on 14 February.

"The funding allows us to continue our push into sectors which we think are exciting for the company, namely connected TV, online video and artificial intelligence," said chief executive officer David Halley.

"In addition, through our commercialisation of CIQ, we will gain an experienced team of data and AI specialists to support our development."

At 1111 GMT, shares in Gfinity were up 29.09% at 0.07p.

Reporting by Josh White for Sharecast.com.

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